Functional Chemicals

Business conditions remained difficult throughout the year, with continued weak demand from the construction market in Europe and general manufacturing. Full-year revenue was down 5 percent, mainly due to adverse currencies, while volumes were down 1 percent. The performance improvement program is contributing to margin improvement and cost reduction. However, overall profitability was impacted by higher restructuring costs. During the year, the intended phase out of organic peroxides production at the Deventer site in the Netherlands was announced, with capacity being consolidated at other sites.

Q4 revenue was down 2 percent compared with the previous year, mainly due to adverse currencies. This was slightly offset by a 4 percent volume increase for the quarter, mainly noticeable at ethylene amines. The divestment of the Primary Amides business was successfully completed during the quarter.